Karachi September 6 2021: The process of proceed utilization of 2nd Right issue of the Unity Foods remained slow during the quarter under report due to the fact that the COVID-19 has slowed down activity at the manufacturers end, as per information shared by the company on Pakistan Stock Exchange.
However, the Company remains committed to executing its well laid down expansion plan and is endeavoring to meet the set timelines for the expansion.
So far, Unity Foods has been able to utilize only 47.5 percent or PKR 1.78 billion from the amount raised through right issue.
“There has been no deviation from the purpose or use of proceeds earlier disclosed to the members”
Muhammad Farrukh, Chief Financial Officer
The Company continues to remain engaged with suppliers of various other equipment related to margarine and shortening plant and packaging units to acquire the same in order to complete its expansion plan and will inform the SECP and PSX on progress as it takes place on quarterly basis.
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Unity Foods Limited announced its second Right Issue on February 19, 2019. The issue constituted 375 million shares at face value of PKR 10 each raising PKR 3,750,000,000. At the time of announcement of Right Shares, the Company had 169,050,000 ordinary shares and each of the then existing share was entitled to about 221.83% right shares.
The Right Issue was successfully closed as per approved schedule of PSX and the proceeds were realized in May, 2019. Thereafter, the Company issued 375 million shares.
